Aspiring Rehabber & Flipper Looking for Some Advice

[David Karaffa]

Hello all! Hope all is well! I am new to biggerpockets.com. What a great website. I have some general questions I hope I can get your insight on. Quick background, I am a licensed Real Estate Consultant out in the Phoenix, AZ area. Before becoming a agent I was a Project Engineer for a commercial general contractor. My ultimate goal is to become a Rehabber/Flipper while maintaining my real estate license.

My questions pertain to the financing of the rehabbing deals. I have heard alot about "hard money loans". For someone who has some liquid funds, but not enough to fund the whole deal, would this be a smart option to pursue? Are there truly hard money lenders out there that may not require any of your funds in the deal if the numbers are good? Just wanted to get some advice on what to look out for with "hard money loans". I am looking to get my foot in the door with rehabbing and this seems like a good option.

I appreciate any insight you can give. Look forward to hearing your feedback.

Thank you!

[Account Closed]

David,

Like Will mentioned, hard money is an option worth pursuing. In Texas the typical rates are 10%-14% plus 3 - 4 points. Make sure you find out all the additional fees you will be charged before signing up with a lender. Also, your rehab amount will be in escrow while the work is being done, so you need to make sure you have enough funds to get the contractors started. And some lenders charge interest on the rehab escrow even though they have not paid it yet, so find out about that as well.